Investors are snatching up cheap houses, hoping to turn a profit when the market picks up, the Wall Street Journal reports. Some are foraging far and wide for potential purchases; others are locals who know the ins and outs of the area market. Investors often make all-cash offers, helping them beat out would-be homeowners looking for new digs.
“Foreclosures are low-hanging fruit at the moment,” says one investor, though competition among buyers is getting tighter. Still, that may change when banks end a moratorium on foreclosures this year. And when investors start selling, supply could once again soar. “All this investor buying isn't depleting supply, it's only shifting it around,” says one.